The hypothesis of this post is merely food for thought, but is worth keeping an eye on as the web grows. Thanks to my friend Ben for planting this conspiracy theory in my head a while back. I’ll focus on business models for the social web (socweb, pronounced suck-web*) and how little real capital is generated for contributors.
Tag: finance
Tired of Ads and Shitty Content? Click Everything
I’m tired of the ad supported model for crappy web content. I don’t feel it’s working to support high quality information, or informed decision making. I’d like to suggest a simple change in activity that can correct the failure of the current ad supported content system, and it’s not ad block. Click every ad on worthless pages. Seriously click every ad on a page that frustrates you. Drown the page in clicks but don’t sign up or buy anything. Devalue each click into non existence for that web property. They won’t get repeat advertisers if your click spam turns into nothing, and either they’ll get better content or die off.
The Fallacy in Controlling Currency Value
National governments endeavor to influence their local currency through a number of tactics. The tactics leveraged include but are not limited to, creating more currency, altering the federal lending interest rate, and issuing attractive bonds (debt). Real trends in currency values are based on market forces which are beyond efficient government control. Governments have heavy influence over a variety of financial activities, but their ability to predict and dictate future productivity is nonexistent. I propose that government effort to control currency value is based on a fallacy. (more…)
An Amateur Investor’s Tale of Favored Sums
Early this morning I experimented with Dave Pinsen’s latest financial product, the Portfolio Armor app. The tool is designed to rapidly search for optimal insurance on purchases to minimize the transaction’s downside. Such a practical and focused tool forced me to recognize the drastic changes to personal investment over the past decade. There are multiple social networks for traders like the StockTwits and Shortscreen communities. Back when I actively traded stocks, I was a lone fish.
Are the best Seed deals moving out of the Valley?
Between Mike Arrington’s sensational AngelGate post, and Fred Wilson’s reaction to the hype I’ve come to my own conclusion. If super angels are gathering it means something’s wrong. It means they can’t find enough good deals to bet on, and that there’s too many sources of money and too high valuations for early stage companies in the Valley. (more…)
VCs, Sprinting Horses till they Sweat
Highly motivated individuals see only the world they wish to shape, and the barriers to their success
From farming, to factories, to refactoring code
Massive Cash Reserves are a Sign of a Broken Economy
Who’s not investing?
A number of tech companies have significant cash reserves compared to their yearly costs and revenue. Microsoft, Apple, and Google all fall into this category with billions of dollars sitting in money markets or other liquid assets^. These highly profitable businesses are building huge stockpiles of cash instead of reinvesting it in their own business, purchasing other companies (M&A), or distributing it to shareholders through dividends. Let’s look at the motivations behind high profit companies sitting on mountains of cash.
Early Stage Investors, Prepare to Write a F$$king Check
*update*: Additional market research revealed that the moving sale market wasn’t quite ready for mobile interfaces or a more technology driven market, and after a gut check neither my cofounder nor I was passionate enough to push through and own the transformation of the garage sale industry. (more…)
Who’s Brad Feld?
Brad Feld co-founded Foundry Group and is an active investor in early stage information technology companies. He also co-founded TechStars which is a nexus for startups in the Boulder area. Out of 600 applicants only 10 get in each year, and those 10 are exposed to a wide range of experienced entrepreneurs that work closely with them over 90 days to perfect their early product and pitch. You can read more about Brad’s background at his blog Feld Thoughts, but here are a few videos that give you a great feel for the way Brad thinks and invests. (more…)